Redbox Instant – Gigaomhttp://gigaom.com
The industry leader in emerging technology researchThu, 24 May 2018 17:25:15 +0000en-UShourly1Why the writing may be on the wall for Redbox Instanthttp://gigaom.com/2014/09/29/why-the-writing-may-be-on-the-wall-for-redbox-instant/
http://gigaom.com/2014/09/29/why-the-writing-may-be-on-the-wall-for-redbox-instant/#commentsMon, 29 Sep 2014 19:43:58 +0000http://gigaom.com/?p=876934Redbox Instant has a problem that may just break its neck: The video service disabled sign-ups for new users because of criminal activity three months ago, and has yet to open up the gates again. Redbox Instant’s website had been used by criminals to verify credit card numbers they illegally obtained elsewhere, and the company was quick to assure users their payment information wasn’t compromised, explaining on its website that “current customers can continue to watch great videos to their heart’s content without reason for worry.”

If their credit card doesn’t expire, that is. [company]Redbox Instant[/company], which is run as a joint venture between [company]Redbox[/company] and [company]Verizon[/company], has also been preventing existing users from changing their payment information, leading to numerous complaints on the site’s Facebook page. Browsing through these complaints also reveals that this isn’t a temporary problem. One of the first posts mentioning the issue is from the end of June.

In other words: Redbox hasn’t been able to acquire new users, or retain existing users with expiring credit cards, for all of the third quarter.

A wild rumor, and a non-denial

But that’s not all: Late last week, a rumor surfaced on Reddit that Redbox Instant would also shut down its service for existing users come October 1. On a whim, I sent Rebox and Verizon a quick email, asking them whether there was anything to this at all, and whether Redbox Instant was going to shut down or introduce any significant changes to its service. The reply? “No comment.”

As a journalist, I’m pretty used to companies declining to comment. Write about an unannounced product or a business deal in the making, and you likely won’t get an answer at all, or a boilerplate answer to the effect that the company in question won’t comment on “rumor and speculation.”

However, the one instance when people usually comment is when there is talk about a company shutting down, and that company wants to make it clear that it will continue to operate. You just don’t confuse your customers leaving that option on the table. So when a Redbox Instant spokesperson sent me that “no comment,” I started to wonder: what the heck is really going on at the video service?

Redbox’s website doesn’t even link to Redbox Instant

Redbox Instant launched in early 2013 with a novel take on [company]Netflix[/company]-like video subscriptions: The service offered users all-you-can-eat access to a catalog of a few thousand movies, and complemented the offer with four Redbox DVD coupons per month. Redbox Instant users also had access to a few thousand movies on a transactional basis, meaning that these titles could be rented or bought either with or without a subscription.

The team behind the service spent the first year or so bringing it to a wide variety of platforms, including Roku, Xbox One, Xbox 360, Playstation 3 and 4, Chromecast, smart TVs, iOS and Android. The service also began to add more titles, but never spent as much as competitors like Netflix or [company]Amazon[/company] on content, which also meant that it never really was able to differentiate itself from the competition with regards to streaming content. Instead, Redbox Instant hoped that it would appeal to Redbox users that also occasionally wanted to stream a movie. “It’s a disc plus offering,” then-CEO Shawn Strickland told me when the service launched in March 2013.

However, for that to work, Redbox would have had to promote the service to its customer base, and that seemingly never happened. If you go to Redbox’s website and search for a movie title, it shows you whether the title is available on DVD or Blu-Ray — but you won’t find any link to Redbox Instant, even if that same movie is available as part of the service’s streaming subscription package. And the one promotional page of the Redbox website that does mention Redbox Instant doesn’t even include a link.

Redbox and Verizon were not happy with subscriber numbers

With that, it’s no surprise that Redbox Instant’s business didn’t develop as planned. J. Scott Di Valerio, CEO of Redbox parent Outerwall, said during the company’s Q2 2014 earnings call that both his company and Verizon were “not pleased with where the subscribers are to date.”

That’s not only significant because Outerwall has been partially bankrolling Redbox Instant, contributing a total of $70 million to date. The company also has an option to terminate the venture early next year if Redbox Instant doesn’t get a certain amount of subscribers by that time. Said Di Valerio: “If we don’t hit certain subscriber thresholds, then we have some decisions to make in March.”

In that context, disabling sign-ups for new subscribers for three months seems like a death wish.

Redbox Instant’s future: A VOD store for Verizon?

I’ve heard a while back from people close to the company that internally, Redbox Instant had been preparing to deemphasize or possibly even get rid of subscriptions, acknowledging that it simply can’t compete with Netflix. It would instead focus on digital rentals and sales. That notion was also echoed by Di Valerio, who remarked during the Outerwall earnings call that the Redbox Instant’s transactional business was increasing.

Of course, that was before the credit card issue hampered that part of Redbox Instant’s business as well. And while movie rentals may have performed better for the service than subscriptions, it’s hard to envision how it would compete with transactional services alone in the long term. It’s a market that already has a lot of competition, including from iTunes, Google Play, Walmart’s Vudu and Technicolor’s M-Go.

That’s not to say that Verizon, and possibly also Redbox, couldn’t make use of a transactional video store. In fact, the Redbox Instant infrastructure is already powering Verizon’s On Demand video store, which up until recently was called FlexView. And with Verizon getting ready to launch an internet-based subscription TV service some time next year, it could make use of the same infrastructure to power movie and TV show rentals.

To be honest, I don’t know how soon we are going to see these changes. But the extended payment processing problems may force the joint venture to make a move sooner rather than later.

]]>http://gigaom.com/2014/09/29/why-the-writing-may-be-on-the-wall-for-redbox-instant/feed/6Redbox Instant, Soundtracker and Fandor add Chromecast supporthttp://gigaom.com/2014/05/01/redbox-instant-soundtracker-and-fandor-add-chromecast-support/
Thu, 01 May 2014 22:24:59 +0000http://gigaom.com/?p=839045Chromecast users just got a few more options to beam movies, TV shows and music to the TV screen: Video subscription service Redbox Instant added support for Google’s (S GOOG) Chromecast streaming adapter to its Android app this week. Indie movie streaming service Fandor also recently added Chromecast support to its iOS, Android and web apps, and the Android Music app SoundTracker now supports casting as well.
]]>Activist investor buys large stake in Redboxhttp://gigaom.com/2013/10/04/activist-investor-buys-large-stake-in-redbox/
Fri, 04 Oct 2013 23:01:09 +0000http://gigaom.com/?p=701930http://www.forbes.com/sites/afontevecchia/2013/10/04/netflix-competitor-redbox-sees-barry-rosensteins-jana-become-top-stockholder/

Activist investor Barry Rosenstein has bought a 14.5 percent share in Outerwall, the parent company of Redbox, for around $204 million, reports Forbes. Rosenstein, who made the investment through his Jana Partners outlet, believes Outerwall to be undervalued, declaring in an SEC statement that options include cost cutting as well as “pursuing a sale, selling and/or discontinuing businesses.” Outerwall not only competes with Netflix through its Redbox DVD kiosks, but also through Redbox Instant, a subscription streaming service the company jointly launched with Verizon.

]]>Vimeo and Redbox Instant are coming to Chromecast. Next up: Plex and HBO Go?http://gigaom.com/2013/07/29/chromecast-vimeo-redbox-instant-plex/
http://gigaom.com/2013/07/29/chromecast-vimeo-redbox-instant-plex/#commentsMon, 29 Jul 2013 19:07:24 +0000http://gigaom.com/?p=672681Chromecast, the streaming video adapter introduced by Google (s GOOG) last week, is quickly gaining support from a number of media platforms. Case in point: Vimeo told us it wants to support Chromecast, and we have learned that Redbox Instant is going to support the device as well.

The makers of the Plex media center are also hinting strongly at plans to support Chromecast, and code found by Chromecast hackers seems to stem from efforts to bring HBO Go to the platform.

Chromecast launched last week with support for a limited number of music and video services. Currently, users can stream media from YouTube, Netflix (s NFLX) and Google Play through the websites and mobile apps of these platforms.

Users can also mirror media form additional websites through a Chrome browser plugin, but this feature has been described as beta by Google. A number of additional services, including Pandora, (s P) AOL and Revision3, were also announced as forthcoming.

But it looks like that others may be getting ready to join the platform as well. When I asked Vimeo about its plans for Chromecast, I got this reply from the company’s VP of mobile, Nick Alt:

“We’re excited about the emerging opportunities bridging mobile to Connected TV and we look forward to offering Chromecast support in our products.”

I’ve also heard that Redbox Instant, which offer subscribers a mix online content and DVD rentals through Redbox’s kiosks, will bring its service to Chromecast. And when I asked a spokesperson for media center maker Plex for their plans for Chromecast, the response was that the Plex folks are “actively investigating and optimistic.” And then there’s this tweet from the Plex Twitter account:

Wow, lots of interest in Chromecast and Plex. Yes, we've ordered a few of them :-)

Finally, it looks like pay TV subscribers with access to HBO may be able to stream HBO Go via Chromecast soon as well. Configuration files unearthed by GTVHacker.com last week hint at tests for HBO GO alongside services that were officially announced as partners last week, and an HBO spokesperson has since confirmed to GigaOM that talks are ongoing to bring the cable network’s online offering to Chromecast:

“We are talking to Google but have nothing definite to offer on timing.”

Check out our first look at Chromecast below:

This post was updated on 7/30 at 9:27am with a statement from HBO.

]]>http://gigaom.com/2013/07/29/chromecast-vimeo-redbox-instant-plex/feed/8Redbox Instant is coming to Rokuhttp://gigaom.com/2013/06/06/redbox-instant-roku/
http://gigaom.com/2013/06/06/redbox-instant-roku/#commentsThu, 06 Jun 2013 16:13:46 +0000http://gigaom.com/?p=655097Redbox Instant by Verizon, (s vz) the video service that combines Redbox DVD rentals with a Netflix-style (s NFLX) subscription offering, is going to launch on Roku streaming players soon. Redbox Instant officially announced Thursday that it will come to Roku “this summer” without providing a firmer deadline.

The collaboration with Roku is another notable step for Redbox Instant as it is working to widen its device footprint. Roku has sold more than five million players in the U.S. to date. Redbox Instant won’t be available on first-generation Roku devices, but the move should still give the company access to a few million additional potential customers.

]]>http://gigaom.com/2013/06/06/redbox-instant-roku/feed/4Redbox Instant is coming to Google TV soon, Roku up nexthttp://gigaom.com/2013/05/17/redbox-instant-google-tv-app/
http://gigaom.com/2013/05/17/redbox-instant-google-tv-app/#commentsFri, 17 May 2013 23:22:41 +0000http://gigaom.com/?p=646794Redbox Instant by Verizon (s vz) is going to bring its streaming service to Google (s GOOG) TV devices soon: The company demonstrated a prototype of its app at Google I/O Friday, and a representative told me that the app will launch in earnest within the next few weeks. After that, the company is going to launch a channel on Roku media streamers.

Check out a photo of the app UI below:

Redbox Instant by Verizon’s prototype app was on display on an LG Google TV that ran the next version of Google TV that is based on Android 4.2.2, or Jelly Bean. That version will come to Google TV devices in the third quarter of this year, but I was told that the Redbox Instant app will be available before that, and that is going to work just fine with the current version of Google TV. However, the service won’t be available on Google TV devices using an Intel processor, which means that owners of the Logitech Revue and other first-generation devices won’t be able to use it.

Redbox Instant first launched on select Samsung TVs and Blu-ray players as well as PCs and mobile devices in March. The joint-venture between Redbox and Verizon has since added support for Microsoft’s Xbox 360 as well as select LG Smart TVs. I was told by a representative Friday that the company is looking to add support for Roku players soon after rolling out the Google TV app.

]]>http://gigaom.com/2013/05/17/redbox-instant-google-tv-app/feed/1Redbox Instant app arrives on Xbox Livehttp://gigaom.com/2013/03/19/redbox-instant-xbox-live/
http://gigaom.com/2013/03/19/redbox-instant-xbox-live/#commentsTue, 19 Mar 2013 19:20:08 +0000http://gigaom.com/?p=621933Xbox (S MSFT) users can now access the new subscription video service from Redbox Instant by Verizon, thanks to a new app that launched on Xbox Live Tuesday. This is the first time the service has been available on a game console, and it also marks the beginning of a marketing campaign for Redbox Instant, which went into public beta just a few days ago.

Redbox Instant offers subscribers four Redbox DVD rentals as well as unlimited streaming access to around 4,600 movies for $8 a month. An additional 4,000 newer titles are offered as streaming rentals or purchases. After a limited-time free introductory offer, Redbox Instant customers will need an Xbox Live Gold subscription to use the service on Microsoft’s game console, which will set them back another $5 a month.

The company launched its closed beta test at the end of December, and opened up to the public mid-March after convincing tens of thousands of testers to become paying customers, according to Redbox Instant CEO Shawn Strickland.

Strickland told me last week that the launch on Xbox Live would also kick off the company’s first real marketing efforts, and that Redbox Instant would start to specifically target Verizon (s VZ) and Redbox (s CSTAR) customers soon after. Apps for LG, Google (s GOOG) TV and Vizio devices would follow in the next few weeks, he added.

]]>http://gigaom.com/2013/03/19/redbox-instant-xbox-live/feed/22Redbox Instant launches publicly, CEO calls original content talk prematurehttp://gigaom.com/2013/03/14/redbox-instant-public-launch-confirmed/
http://gigaom.com/2013/03/14/redbox-instant-public-launch-confirmed/#commentsThu, 14 Mar 2013 17:43:13 +0000http://gigaom.com/?p=620559Surprise! Redbox Instant by Verizon(s VZ) officially launched to the public Thursday, just as I had predicted in an earlier story. The launch comes after a three-month-long closed beta test that Redbox Instant CEO Shawn Strickland characterized as a great learning opportunity during a phone conversation Thursday morning. “Now we are open for business,” he added.

Redbox Instant currently offers its subscribers access to 4,600 subscription titles and four Redbox DVD rentals for $8 a month. Customers can also digitally rent or buy around 4,000 movies for a fee to augment their subscriptions with newer fare. Strickland told me that the service saw interest from “hundreds of thousands” of consumers who signed up to join the closed beta test. Tens of thousands not only joined for a free trial, but stayed around to become paying customers after their trial period ended.

So who are those Redbox Instant customers? Strickland said that the beta test confirmed the company’s belief that it was primarily catering to people who still value physical rentals. “It’s a disc plus offering,” he said, with streaming supplementing DVD rentals. That’s also reflected in the type of content the company is making available for streaming. “It clearly starts with movies,” said Strickland, adding that the focus might evolve over time.

That approach is very different from Netflix, (s NFLX) which also started out with a movie-focused DVD service, but now invests heavily in TV content. Does that mean Netflix and Redbox are going to be complementary, as opposed to arch-enemies? My conversation with Strickland left me with the impression that he would be okay with that — as long as people are paying for his company’s service as well.

“We think that the over-the-top space will evolve very similarly to the cable and network space,” he said. Meaning: You might get your content from more than one streaming provider in the future, just like you get it from more than one cable network.

Of course, a large part of the rise of cable networks like HBO(s TWX) or even AMC has been the production of original content, something that has been an increasing focus of Netflix and Hulu as well. CAA agent Peter Micelli speculated a few days ago that Redbox Instant may venture into original content as well. Strickland called this kind of talk “really premature,” explaining that Redbox Instant doesn’t even have enough insights into what kind of exclusive content its subscribers could be interested in yet. But he added: “From an industry perspective, there is a clear force in that direction.”

]]>http://gigaom.com/2013/03/14/redbox-instant-public-launch-confirmed/feed/5How Redbox Instant is gamifying its beta testhttp://gigaom.com/2013/01/16/how-redbox-instant-is-gamifying-its-beta-test/
http://gigaom.com/2013/01/16/how-redbox-instant-is-gamifying-its-beta-test/#commentsThu, 17 Jan 2013 00:29:00 +0000http://gigaom.com/?p=601946Redbox Instant by Verizon is doing something interesting to get more feedback on its invite-only beta test: The Netflix (s NFLX) competitor recently launched a separate website dubbed Redhead Nation that invites Redbox Instant users to take part in games and in return win prizes ranging from a Redbox rental to an Xbox. (S MSFT) Some questions are about direct product feedback while others hint at more ambitious crowdsourcing plans.

Redbox Instant Chief marketing Officer Amy Gibby told me during a phone call Wednesday that the goal of the new site was to learn from beta testers. “We can really learn a lot from them,” she said, adding that there are already 2,000 people signed up for Redhead Nation.

One part of Redhead Nation is a daily question about some of the service’s features. Rate how the Redbox Instant dashboard works for you, and you’ll receive 100 points. Add a request for additional features, and Redbox Instant rewards you with another 50 points. Get 500 points, and you’ll be entered into a sweepstakes to win an Xbox and other prizes. And of course, there’s also a leaderboard, showing that some subscribers have already earned more than 4000 points.

Giving users rewards to answer questions about the service is smart, because it increases the likelihood that the company will actually get a good amount of feedback. But Redhead Nation seems to lay the foundation to go much further:

This is smart: Redbox Instant asks its users to tag its movies.

The site also solicits users to take part in small games and quizzes. Some of these just try to amuse the movie buff crowd, but others could actually prove to be very helpful for the site going forward. In particular, Redhead Nation asks users to add tags to movie titles offered through the service. This could be used to beef up Redbox’s metadata library, telling the service what kind of keywords its subscribers associate with some of its titles, and in turn helping to strengthen its discovery skills. Using tags in this way is “definitely a consideration,” said Gibby, adding that a part of the Redhead Nation project was to test these kinds of theories.

Established competitor Netflix has put a lot of effort into algorithmic recommendations, suggesting new titles based on subscribers rating titles they’ve seen, as well as on a whole bunch of additional data it collects when users interact with the service. A bigger focus on tagging and more active, natural-language responses from its users seems like an interesting way for Redbox Instant to counter that algorithmic approach.

The current Redhead Nation sweepstakes concludes at the end of January. Gibby said that the company hasn’t decided yet whether it will run further sweepstakes. However, it could make a lot of sense for the company to keep this going in some form or another and keep users playing to improve the company’s service.

]]>http://gigaom.com/2013/01/16/how-redbox-instant-is-gamifying-its-beta-test/feed/3Redbox Instant CEO: Netflix was wrong to sideline DVDshttp://gigaom.com/2013/01/09/redbox-instant-netflix-dvds/
http://gigaom.com/2013/01/09/redbox-instant-netflix-dvds/#commentsWed, 09 Jan 2013 19:31:39 +0000http://gigaom.com/?p=600521A digital media service – that also offers DVDs? In 2013? “We are a bit of a throwback,” admitted Redbox Instant by Verizon CEO Shawn Strickland at a small press event in Las Vegas on Wednesday. Common wisdom in the industry is that consumers are moving towards streaming and that DVDs are a thing of the past, but Strickland and his team believe that physical media can actually be part of a viable offering for some time to come.

Redbox Instant, which started its private beta test last month, offers consumers DVD coupons as part of their subscription package, and Strickland said that the format helps to provide a unique offering with newly-released titles that other services don’t have. “That’s the freshest way to get the content,” he said about DVDs.

Netflix has since put most of its energy towards building out the streaming business, and seen the number of its DVD subscribers continuously decline. But Strickland argued that this was the wrong move. “There was a choice forced on the consumer,” he told me.

Redbox Instant now wants to wean some of those consumers off their Netflix subscription – and the company is particularly looking to win over folks who complement their Netflix plan with Redbox rentals. Strickland said Wednesday that between 30 and 50 percent of all Redbox users already subscribe to an over-the-top streaming service.

Redbox Instant is currently in private beta, and wants to open up before the end of the first quarter. To be ready for that, the company is ramping up its device support. Beta testers already have access to iOS and Android apps as well as apps for LG and Samsung smart TVs and connected Blu-ray players. This week, it announced a partnership with Vizio to bring Redbox Instant to Google (s GOOG) TV devices.